Open AccessA compound Tobin tax: A political economy investigation
Author(s) -
Philip Arestis,
Nikolaos Karagiannis
Publication year - 2022
Publication title -
panoeconomicus
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.289
H-Index - 14
eISSN - 2217-2386
pISSN - 1452-595X
DOI - 10.2298/pan211204013a
Subject(s) - multinational corporation , tax avoidance , pound (networking) , economics , tax evasion , dimension (graph theory) , indirect tax , tax credit , tax reform , politics , ad valorem tax , value added tax , double taxation , international economics , monetary economics , public economics , political science , finance , law , mathematics , world wide web , computer science , pure mathematics
The paper focuses on international tax proposals and analyzes rationales and challenges for adopting a com-pound global tax. It is proposed here that such a compound global tax instrument would mainly need to focus on two tiers. The one, based on the U.S. President Joe Biden?s 2021 suggestion, would need to close off tax avoidance and tax evasion possibilities for large multinational and transnational corporations; and the other, based on the James Tobin?s 1972-tax proposal, would seek to eliminate the speculative dimension of international foreign exchange dealings. These tiers are discussed extensively in this contribution, concluding with the suggestion that policy coordination is paramount.